2011 ANNUAL REPORT
service. solutions. security.
contents
2011 data /
1
report on 2011 /
2
safety and strength /
business banking /
6
personal banking /
8
4
private banking & wealth management /
financial data /
10
12
senior management & senior officers /
board of directors /
branch network /
14
First Hawaiian Bank (www.fhb.com), founded in 1858, is Hawai‘i’s oldest
and largest financial institution, with total assets of $15.8 billion. The bank
is headquartered in Honolulu and has 58 branches throughout Hawai‘i,
three in Guam and two in Saipan; and an offshore branch in Grand Cayman,
British West Indies. First Hawaiian can assist businesses in Japan looking to
operate or invest in Hawai‘i through its BNP Paribas affiliate office in Tokyo.
Our subsidiaries include First Hawaiian Leasing, Inc., primarily engaged in
commercial equipment and vehicle leasing; FHB Guam Trust Co., offering
personal trust services and estate plan administration to clients on Guam; and
Bishop Street Capital Management, Inc., a registered investment advisor which
furnishes money management services to institutional and individual clients.
First Hawaiian Bank is a subsidiary of BancWest Corporation, whose other
major subsidiary is California-based Bank of the West.
16
inside back cover
First Hawaiian Bank and Bank of the West are wholly owned subsidiaries of
BNP Paribas (www.bnpparibas.com), a leader in global financial services and
one of the strongest banks in the world (Rated AA- by Standard � Poor's,
third rating on a scale of 22). BNP Paribas has key positions in its three core
businesses: Retail Banking, Investment Solutions and Corporate � Investment
Banking. BNP Paribas operates in more than 80 countries and has 205,000
employees. Besides its European domestic markets, BNP Paribas also has a
large network in the United States and solid positions in Asia.
bnp paribas management principles
BNP Paribas has adopted these management principles for its
worldwide operations.
1. Client Focus. Inspire our people to focus in an innovative way
on clients first.
2. Risk-Aware Entrepreneurship. Undertake initiatives for development and
efficiency while being accountable by:
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serve the global interest of BNP Paribas and its clients.
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3. Caring for our People. Care for our people, by showing them respect,
promoting equal opportunities and developing their talents and skills.
4. Leading by Example. Set an example through our own behavior and with
regard to ethics by respecting regulations, applying compliance rules and
behaving in a socially responsible way.
ON THE COVER:
View of Hanakapi‘ai Falls, Nā Pali Coast, Kaua‘i.
2011 data
Net Income
$250
(in millions)
2011 Net Income: $209.0 million
25-Year Compound Annual Growth Rate: 7.8%
$200
financial highlights
$150
(UNAUDITED)
(in thousands)
2011
2010
$100
FOR THE YEAR
Net income
$
Return on average tangible assets
Efficiency ratio
209,030
1.48 %
43.7 %
$
202,111 *
1.50 %*
43.6 %
$50
$0
FIGURE FOR 2010 EXCLUDES ONE-TIME TAX BENEFIT OF $10.5 MILLION.
FIGURE FOR 2009 EXCLUDES ONE-TIME LEVERAGED LEASE TAX BENEFIT OF $29.5 MILLION
ASSOCIATED WITH THE SALE OF AIRCRAFT EQUIPMENT.
AT YEAR END
Total assets
Loans and leases
Deposits
Stockholder’s equity
$ 15,830,240
8,392,044
12,165,645
2,668,190
’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11
$ 15,195,035
8,268,900
10,517,899
2,623,465
Deposits
$12
YEAR-END FINANCIAL RATIOS
Allowance for loan and lease losses to
total loans and leases
Nonperforming assets to total assets (1)
Net loans and leases charged off to
average loans and leases
(in billions)
Total Deposits (12/31/11): $12.2 billion
25-Year Compound Annual Growth Rate: 5.4%
$11
$10
$9
1.40 %
0.21 %
1.32 %
0.25 %
0.41 %
0.73 %
$6
(1) Nonperforming assets consist of nonperforming loans and leases and other
real estate owned.
* Excludes a one-time tax benefit of $10.5 million.
$4
$8
$7
$5
$3
$2
$1
$0
credit ratings
Total Assets
First Hawaiian Bank uninsured CDs:
Long-term
Short-term
Fitch
A+
F1
Standard & Poor’s
A
A-1
’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11
Moody’s
A2
P-1
(in billions)
$16
$14
Total assets (12/31/11): $15.8 billion
25-Year Compound Annual Growth Rate: 6.0%
$12
$10
$8
$6
$4
our core values
$2
T H E “ 5 C ’ S ” O F F I R S T H AWA I I A N B A N K
1
$0
’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11
caring
character
2
3
4
5
Our employees have a
Our employees understand
Our employees work
Our employees have
Our employees have
service spirit, a sincere
that our bank was built
together as one team.
a sense of urgency to
a positive, quiet, can-do
compassion combined with
upon and depends upon
We support each other
provide quality services
attitude based on
the professional capability
trust between bank and
and build customer
and products that meet
training and expertise.
to help customers, each
customer, as well as trust
relationships together.
customers’ needs.
Competence breeds
other and this community.
among employees.
cooperation
competitiveness
confidence
confidence.
1
2011 IN REVIEW
Another Solid Year
of Growth
Aloha,
Despite the fragile economic recoveries here and around
the nation, our bank had another strong year in 2011, with
significant deposit growth and continued solid asset quality. We
lead all Hawai‘i banks in assets, deposits, loans, card transaction
processing, and credit and debit cards issued. Thanks to our
highly productive employees, efficiency ratio rankings show
that we’re still the most efficient bank in Hawai‘i.
In 2011:
a "-,0&10$/"48<F>~1,/" ,/!x89F9&))&,+F2/!"-,0&1
increase has led the Hawai‘i market each year since 2004.
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sluggish as many businesses remain cautious about the
strength of the recovery.
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all other Hawai‘i banks combined and in the top quartile
nationally as a percentage of total assets.
Donald G. Horner (left) and Robert S. Harrison.
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the impact of a one-time tax benefit in 2010.
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card, at our ATMs and 7,500 credit card locations, making it easier
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best among Hawai‘i banks.
relationship banking
The key to our continued growth is “Relationship Banking,”
our commitment to assign an individual Business, Private
or Personal Banker to any customer with $5,000 or more in
loans and deposits. These assigned bankers are committed to
personal customer service.
Valuing relationships is an integral part of the “Five C’s” (Caring,
Character, Cooperation, Competitiveness, Confidence) — the
core values featured throughout this report.
new in 2011
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offer personal trust services and estate plan administration.
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and access via a mobile phone or device.
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In closing, I want to thank two longtime members of our Board of
Directors who retired during 2011: Dr. Fujio Matsuda and James C.
Wo. They made significant contributions and will be missed.
As I retire as Chief Executive Officer, I couldn’t be more confident
about our bank’s leadership team. Bob Harrison, the incoming CEO,
has been an effective banker for more than two decades. He and
the management team care very much about our communities, our
customers and our employees and will nurture First Hawaiian as a
continuing force for service, solutions and security.
Mahalo nui loa,
Donald G. Horner
Donald G. Horner
CHAIRMAN AND CHIEF EXECUTIVE OFFICER (EFFECTIVE 2011)
CHAIRMAN OF THE BOARD (EFFECTIVE JANUARY 1, 2012)
2012 A ND BEYOND
Optimism for Our Bank, Our Economy
Aloha,
Don Horner described the strategies and accomplishments that
left our bank on a strong, solid footing as 2011 ended. We’re
optimistic that 2012 and beyond will be even better for our
bank and the markets we serve. Here’s why:
1. A recovering economy. Hawai‘i’s economy is on a recovery
trajectory, although slower than we would like.
2. Our “Relationship Banking” strategy. Our well-trained,
seasoned staff members know their customers’ needs well.
3. Substantial liquidity and capacity to make loans thanks to
our increase in deposits.
4. Strong credit ratings.
5. A complete, modern product mix.
6. Shared core values — the “Five C’s” (Caring, Character,
Cooperation, Competitiveness, Confidence) that are
highlighted in this report.
We have a commitment to Service, Solutions and Security:
service
In this era of exponential growth in electronic banking,
customers still prize face-to-face service. We are stepping up
investments in employee training and in our branch system.
In 2012, we will begin major renovations at Makiki branch and
begin work on a new, expanded facility in ‘Āina Haina. We just
added 22 new ATMs in Zippy’s to complement the off-branch
convenience that already includes 7-11 Stores.
solutions
We are always looking ahead for banking solutions that allow
our customers to anticipate change. For example, nearly 25
years ago we began processing JCB Card transactions for the
growing flow of Japanese visitors. In 2008, we became the
first Island bank to accept China Union Pay cards. In 2011, we
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customers are positioned to serve these markets.
security
We are Hawai‘i’s largest and strongest bank and rank in the
top tier of U.S. banks on many measures of strength and
soundness. Our parent company, BNP Paribas, is one of the
best rated banks in the world (AA- by Standard � Poor's).
community commitment
First Hawaiian and our employee ‘ohana willingly accept our
responsibility to help others. During 2011, our bank and the
First Hawaiian Bank Foundation, the state’s largest corporate
foundation, contributed to more than 400 nonprofit organizations.
Our employees also embrace this spirit of lokomaika‘i (giving). They
spent thousands of hours in 2011 helping nonprofits and reached
deep into their wallets as well. More than 96% of employees
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to benefit 37 charities in Hawai‘i, Guam and Saipan. We’re proud of
what they do.
In 2011, we launched the Japan-Hawai‘i Relief Fund, raising
$1.2 million toward Japan’s recovery from its earthquake/tsunami.
We’ve become a “greener” company. Changes in heating, lighting,
air conditioning and computers lowered our electricity use by 19%
since 2003; water use is down 36%.
In all these ways, we show that we care about where we live.
Don Horner’s retirement as CEO on December 31, 2011, marks
the end of a distinguished 33-year career with our bank. All of us
at First Hawaiian have profited from working with Don and we’ll
continue to value his counsel as Chairman of our Board. Thanks
to Don and many other fine bankers past and present, we move
into 2012 as the #1 Hawai‘i bank in assets, deposits, lending, credit
rating, credit cards and internal efficiency.
We've got a great team in place, with new Chief Operating Officer
Ray Ono and many other experienced leaders. Our basic strategy
will remain the same: Building relationships with customers,
embracing innovation, living up to our core values.
The primary mission of First Hawaiian Bank is to be first in
customer service and satisfaction. “Hawaiian” is more than our
middle name. The word expresses our culture and commitment to
our customers, fellow employees and community.
Mahalo for trusting us,
Robert S. Harrison
Robert S. Harrison
PRESIDENT AND CHIEF OPERATING OFFICER (EFFECTIVE 2011)
PRESIDENT AND CHIEF EXECUTIVE OFFICER (EFFECTIVE JANUARY 1, 2012)
3
strength
Hawai‘i’s #1 bank in:
NET WORTH
Assets,
total equity capital
Loans
More than all
other Hawai‘i banks
combined.
and
$2.7
billion
Deposits.
43.7%
EFFICIENCY RATIO
One of the best
in U.S.
Small business
lending
PROFITABILITY
$209
million
A+ rating of long-term CDs by Fitch.
Only A+ Hawai’i bank.
+++++ (Superior) rating from Bankrate.com
Highest rated local bank.
commitment to
More than
all other
Hawai‘i banks
combined.
credit quality
0.21% ratio
of nonperforming
assets to
total assets, in top
10% of U.S. banks
our size.
safety
Through corporate philanthropy and volunteerism,
First Hawaiian and our employees support our
neighbors and communities.
community
Hawai‘i’s Largest Corporate
Employee Generosity. Kōkua
Employee Volunteerism. It's a
Foundation. During 2011, the First
Mai, our employee charitable
proud tradition for First Hawaiian
Hawaiian Bank Foundation contributed
giving campaign, raised $576,000
Bank’s 2,151 employees to say "Yes" to
to more than 400 nonprofit
for 37 nonprofit service agencies.
touching lives where we live and work.
organizations. Our philanthropy
Kōkua Mai was generously
They spend thousands of hours in
supports education, health and human
supported at every level of the
mentoring youth, coaching, scouting,
services, community development,
bank, from tellers to vice presidents
food drives and volunteering on more
culture and the arts.
to senior management.
than 100 nonprofit boards.
In all these ways, the First Hawaiian Bank ‘ohana demonstrates
our united commitment to the families and neighborhoods of
Hawai‘i, Guam and Saipan.
4
confidence
Our bank employees have a positive, can-do attitude.
“We have confidence in First Hawaiian Bank and we know they
have confidence in us and in their ability to help us,”
said President Tan Tek Lum of Lum Yip Kee, Limited. “We and First Hawaiian Bank have shared values. If
not, our family wouldn’t have stayed with the bank for more than a century. They’re very good to us.
U6$/+!#1%"/H2*&-""H+&**&$/+1#/,*
2+$!,+$H%&+H4002 "00#2)"+1/"-/"+"2/&+1/,
and rice, merchandising and real estate. Today, his grandchildren and great-grandchildren still count on
First Hawaiian with confidence.”
Photo: First Hawaiian Bank Vice President Russell Loo (standing, center) with the Lum Yip Kee, Limited
leadership team. President Tan Tek Lum (standing, left), Executive Vice President Wing Tek Lum (standing,
right) and (seated, left to right) Treasurer Jeffrey M.C. Lum and Secretary Melissa Lum.
5
Business Banking
Business Banker
eDeposit Service
Let a Business Banker help you access the financial tools
available to grow your business. Our Business Bankers average
20 years of experience in the financial services industry.
Deposit checks from your office electronically by
scanning images.
Commercial Lending
More commercial and industrial loans than any other
Hawai‘i bank.
63 Convenient Branches, 303 ATMs
FHB Business OnLineSM Secured online access.
Web Cash Manager A bank in your computer.
Credit Card Merchant Services
Hawai‘i’s largest (and only locally-based) card acceptance
and processing for MasterCard®, Visa®, American Express®,
JCB, Discover®, Diners Club®, China Union Pay, BC Global
/!p,/"qF
Commercial Real Estate
We make land and construction loans to borrowers in our
primary market areas.
Payroll Services
Business Savings, Certificates of Deposit and Checking
Business Cash Manager
Collection and disbursement, sweep accounts and more.
Accounting Support Services
Controlled disbursement, check image CD-ROM,
ACH debit block.
Bill Payment Services
Condominium Association Lending
Priority BankingSM Plan for Business
Discounts and premium rewards.
Business FirstTermSM Loans, Business FirstLineSM of Credit
Captive Insurance
Serving captive insurance companies longer than any
other Hawai‘i bank.
Electronic Bill Presentment and Payment
6
Employee 401(k) Plans
Private Banking for Corporate Officers
Equipment Financing/Leasing
Trust and Investment Management
Succession Planning
Insurance
SBA, FHA and HEDCO (Hawaii Economic Development
Corp.) Loans
OHA Mālama Loans
For Native Hawaiian consumers and businesses in partnership
with the Office of Hawaiian Affairs and U.S. Administration for
Native Americans.
It’s In The Cards
Priority RewardsSM Business Credit Cards
Pay expenses, earn cash rebates, gift cards, no-blackout travel,
cruises, Las Vegas packages. Rewards can be consolidated at
the company level.
United MileagePlus® Business Credit Cards
Pay expenses, earn miles on United and 26 other Star Alliance
airlines. Especially for Guam and Saipan residents.
Corporate Credit Cards
Authorization controls, general ledger interface, online
information.
For Dealer Financing
Vehicle Inventory Financing
Largest flooring lender in Hawai‘i
DataScan Dealer Access System
Online inventory management tool.
character
Our employees understand that our bank was built upon and depends upon trust between bank and customer.
“In our business, integrity is everything. We’ve built a
relationship of trust with First Hawaiian Bank over the years,”
said Linda Fernandez, President of Fun Factory, Inc., part of the 109-year-old Fernandez family
entertainment business. “The bank stepped in to help us in tough times in the past and their door is
always open to assist us.”
“We provide joy. It’s great to see kids’ eyes light up,” added Scott Fernandez, President of E.K. Fernandez
Shows, Inc., the carnival side of the operation. “But, of course, it’s a business, too. The bank has been
instrumental in giving us financing, even helping with international finance. To do that they need to
understand our unique business, which they do.”
Photo: Left to right, First Hawaiian Bank Senior Vice President Wayne Suehiro, Linda Fernandez, Scott Fernandez.
7
Personal Banking
Personal Banker
Priority RewardsSM Credit Cards
Build a relationship with a banker who’ll be your liaison to
resources including banking, trust, investments and insurance.
Our Personal Bankers average 21 years of experience in the
financial services industry.
Earn CashPointsSM redeemable for cash rebates, gift cards,
no-blackout travel on any airline, hotels, cruises, Las Vegas
packages.
FHB Mobile Banking
Cash Rewards Credit Cards
Up to 3% cash back, automatically.
Bank through your mobile phone or device.
Consumer Convenience
United MileagePlus® Credit Cards
63 branches, 303 ATMs.
Earn miles for anywhere United Airlines flies. Especially for
Guam and Saipan residents.
7-Day Supermarket Banking
Mortgage Lending
in Hawai‘i’s largest Safeway store, located in East Honolulu.
First Hawaiian services $5 billion in home mortgage loans.
The Priority Banking PlanSM
Equity FirstLineSM
Rewards you with discounts on loans and fees, premium
deposit rates, preferred credit lines and more — based on
how much personal banking you do with us.
Revolving credit line based on your home equity.
FHB OnLineSM
Equity FirstLineSM Plus
“Rate Lock” feature allows you to convert any portion of your
outstanding balance to a low, fixed-rate amortizing loan.
Bank whenever, wherever there’s Internet access.
FHB DirectSM
Car and Truck Lending
Top lender to consumers in Hawai‘i.
State-of-the-art online deposit account opening.
Approvals in SecondsSM
Instant answers to personal loan and credit card requests
online (at fhb.com) or at a branch.
Savings and Checking Accounts
A variety of personal accounts.
Individual Retirement Accounts (IRA)
PrimeTimeSM (Hawai‘i) and Primera (Guam/Saipan)
For those age 50 or better, free and discounted banking
services, merchant discounts and special event invitations.
Wealth Advisory Services
PayAnyDay® Personal Loans
Personal FirstLineSM Plus
A secured line of credit for homeowners with possible tax
benefits.
Personal FirstLineSM of Credit
An unsecured revolving credit line; no collateral required.
Military Appreciation Package
Checking, savings and discounted loan services for active and
reserve military personnel.
OHA Mālama Loans
Personalized wealth management solutions including
investments, insurance, estate and retirement planning.
Offered to Native Hawaiian consumers and businesses in
partnership with the Office of Hawaiian Affairs and U.S.
Administration for Native Americans.
Credit and Debit Cards
Specialty Loans for Solar Heating/Photovoltaic Energy
No. 1 issuer of Visa® and MasterCard® products in Hawai‘i.
YesExpress MoneySM Transfer
New global remittance service.
8
cooperation
Our bank employees work together as one team to serve our customers. We build customer relationships together.
“We have a lot of long-time employees because of our spirit of
cooperation; I see the same with First Hawaiian.”
“The bank’s employees cooperate to meet our needs,” said Hawaiian Host, Inc./"0&!"+1ƿ"&1%(*,1,F
“We have a lot of facilities and equipment but the people absolutely make it happen — same with First Hawaiian.
Both companies care a lot for their employees and customers.
“Our ties with the bank go back to Mamoru Takitani, Hawaiian Host’s founder. They truly work hard to understand
our business and supported our expansion to a new factory in ‘Iwilei and sales of our chocolate and macadamia
products to over 24 countries throughout the world. First Hawaiian’s values are very compatible with Hawaiian
Host’s value statement. That’s what has made us longstanding business partners.”
Photo: Keith Sakamoto (left) and First Hawaiian Senior Vice President Mitchell Nishimoto.
9
Private Banking & Wealth Management
Service: An integrated team of professionals
serving as your trusted advisors.
Solutions: A full range of personal and business
wealth management services.
Security: a 153-year history of serving
your financial needs as Hawai‘i’s oldest and
largest bank.
Our interdisciplinary team works together to
develop and execute a comprehensive financial
plan focused on preserving and growing your
assets in accordance with your goals and values.
We tailor financial solutions fitted to every stage of
your lifecycle — young adult, thirties, middle age
and seniors.
Comprehensive consulting and portfolio management for
Private Banking clients. A Wealth Management Advisor
works with a select group of independent investment
advisors and your Private Banker to achieve your investment
objectives through our access to some of the nation’s best
investment managers.
Bishop Street Capital Management
A Hawai‘i-based investment management subsidiary of First
Hawaiian Bank. BSCM is an SEC Registered Investment Advisor
that provides investment services to individuals, corporations,
unions and institutions.
Insurance
Our licensed specialists review your insurance needs and
select from only highly-rated insurers to find you the best life,
disability or long-term care policy at the best value.
Annuities
Income for life to supplement your retirement income.
Private Banking
Institutional Investment Management
Your assigned Private Banker assists you in constructing a
customized plan and monitors that plan to insure your goals
are being met. The Private Banker serves as your “Financial
Quarterback” and gives you access to some of the finest
professionals in the business of banking, estate planning,
insurance and investments.
First Hawaiian has decades of experience providing institutional investment management to serve public and private
foundations, endowments, hospitals, schools, unions and
corporations.
Our Private Bankers average 23 years of experience in the
financial services industry.
We’ve been helping labor unions with their banking, custody
and investment needs longer than any other Hawai‘i trust
company.
Wealth Advisory Services
An integrated suite of personalized wealth management
solutions including estate and business succession planning,
portfolio management and insurance.
Personal Trust Services
Experienced Personal Trust Officers help you provide for your
beneficiaries in the future while protecting your assets and
managing your taxes today.
FHB Guam Trust Co.
First bank on Guam to offer personal trust services.
10
PrivateInvestSM
Taft-Hartley
Employee Benefit Plans
A full range of tailored plan services including trusteeship,
recordkeeping, employee enrollment and communication, and
mutual fund screening.
Corporations/Institutions/Endowments
We customize investment strategies to help our clients meet
their specific goals. From short-term, high-liquidity portfolios
to long-term, income and capital appreciation strategies, we
are able to construct a portfolio to meet our clients’ needs.
competitiveness
Our bank employees have a sense of urgency and commitment to meet customers’ needs.
“First Hawaiian saw what we needed and took advantage of the
opportunity to compete for our business. ”
“Moving to First Hawaiian was seamless,” said Don Young, president of 123-year-old, family-owned Haleakala
Ranch Company on Maui. “First Hawaiian and the Ranch are two of the oldest companies in Hawai‘i, but our
business relationship is just three years old. We switched our banking to First Hawaiian because they share our
pride in the land and our long-term focus.
“Our shareholders are committed to land stewardship and the paniolo heritage. Without the financing support
we’ve gotten from First Hawaiian, it doesn’t work. With them, financing doesn’t become an obstacle to
decision-making.”
Photo: Left to right, Haleakala Ranch Vice President � CFO John Kreag, First Hawaiian Senior Vice President
Brian Kakihara, Haleakala Ranch President Don Young.
11
condensed consolidated balance sheets
(UNAUDITED)
(in thousands)
As of December 31,
2011
ASSETS
Cash and due from banks
Interest-bearing deposits in other banks
Investment securities
Loans and leases
Less allowance for loan and lease losses
Net loans and leases
Intangible assets, net
Other assets
TOTAL ASSETS
$
$
298,920
1,416,621
3,981,458
8,392,044
117,092
8,274,952
1,008,743
849,546
15,830,240
$
$
190,957
1,206,766
3,804,493
8,268,900
108,955
8,159,945
1,011,978
820,896
15,195,035
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY
$10
$9
Total Loans � Leases (12/31/11): $8.4 billion
25-Year Compound Annual Growth Rate: 6.4%
$8
$7
$6
$5
$3
$
$
11,335,918
829,727
12,165,645
624,905
30,941
340,559
13,162,050
2,668,190
15,830,240
$
$
9,739,139
778,760
10,517,899
1,711,520
50,946
291,205
12,571,570
2,623,465
15,195,035
condensed consolidated statements of income
(UNAUDITED)
2011
$
498,194
42,100
$1
$0
’07
’08
’09
’10
’11
Most Equity Among
All Hawai‘i Banks
$2,668
$927
Bank of Hawaii
2010
$
$2
First Hawaiian Bank
(in thousands)
Year Ended December 31,
NET INTEREST INCOME
Net interest income
Provision for loan and lease losses
Net interest income after provision for loan and
lease losses
(in billions)
$4
LIABILITIES AND STOCKHOLDER’S EQUITY
Deposits
Interest-bearing
Noninterest-bearing
Total deposits
Short-term borrowings
Long-term debt
Other liabilities
Total liabilities
Total stockholder’s equity
Loans & Leases
2010
507,429
62,900
456,094
444,529
24,981
48,895
65,450
1,724
27,174
168,224
23,571
47,552
62,545
(476)
25,649
158,841
157,504
22,080
12,760
2,593
95,525
290,462
148,523
20,825
12,623
2,672
106,372
291,015
Central Pacific Bank
$540
American Savings Bank
$489
Territorial Savings Bank
MILLIONS
$198
$0
$1,000
$2,000
$3,000
SOURCE: EQUITY CAPITAL FIGURES IN FEDERAL GOVERNMENT REGULATORY
REPORTS OF DECEMBER 31, 2011 (BASED ON GAAP ACCOUNTING).
NONINTEREST INCOME
Trust and investment services income
Service charges on deposit accounts
Other services charges and fees
Securities gains (losses), net
Other
Total noninterest income
NONINTEREST EXPENSE
Salaries and employee benefits
Net occupancy expense
Equipment expense
Intangible amortization
Other
Total noninterest expense
12
26%
Commercial Real Estate
23%
Commercial
11%
Consumer
4%
Other
NET INCOME
Income before income taxes
Provision for income taxes
Net income
Diversified Loan & Lease
Portfolio
$
333,856
124,826
209,030
$
312,355
99,726
212,629
36%
Residential Real Estate
caring
Our bank employees have a sincere compassion and the ability to help customers and the community.
“Financial support from a caring company like First Hawaiian
Bank and its employees means so much to us,”
said Donna Witsell, Executive Director of HUGS (Help, Understanding � Group Support). “To underscore
their commitment, two First Hawaiian bankers serve on our volunteer board as well.
“HUGS provides emotional and financial assistance to families like the Grays who have a seriously ill
child, providing respite care for exhausted parents, making hospital visits, and offering space for families
to gather with peers so they know ‘I’m not alone.’ When a company like First Hawaiian cares, as it has
through HUGS’ 30-year history, we know we’re not alone, either.”
Photo: First Hawaiian Bank Foundation President Sharon Brown (far right), HUGS Executive Director Donna
Witsell (2nd from right) and, at left, the Gray family (parents Rolando and Maria, children Jaevhyn and Jezrhyel).
13
Senior Management
Left to right, Robert T. Fujioka, Vice
Chairman � Chief Lending Officer;
Albert M. Yamada, Vice Chairman,
CFO � Chief Administrative Officer;
Raymond S. Ono, Vice Chairman �
Chief Operating Officer,
Gary L. Caulfield, Vice Chairman �
Chief Information Officer;
Robert S. Harrison, President �
Chief Executive Officer.
Above, left to right, Executive Vice Presidents Stephen J. Williams (O‘ahu
Region II), Alan H. Arizumi (Business, Dealer � Card Services Group),
James (Kimo) W. Mills (Service Delivery Division), Corbett A.K. Kalama
(Wealth Management Group), Kristi L. Maynard (Treasury � Investment
Division) and Brandt G. Farias (Marketing Communications Division).
At left, left to right, Executive Vice Presidents William E. Atwater
(General Counsel � Secretary), Iris Y. Matsumoto (Human Resources
Division), Winston K.H. Chow (Consumer Banking Group),
Melvin W.Y. Mow (Chief Risk Officer) and Curt T. Otaguro (O‘ahu Region I).
14
Senior Officers
First Hawaiian Bank
EXECUTIVE
VICE PRESIDENTS
Gina O.W. Anonuevo
Chief Compliance Officer
Brian N. Sunada
Commercial Real Estate
SENIOR VICE PRESIDENTS
Rachel A. Hanlon
Private Banking
Brent E. Helgeson
Mark F. Oyadomori
Wealth Advisory Division
Kenneth C.S. Pai
Dealer Division
Trust Real Estate Services
Jeffrey N.M. Higashi
Alethea A. Seto
Corporate Banking
Shigeo Hone
Sales, Service � Training
Bryan I. Shigezawa
Japan Business Development
Treasury � Investment
David A. Honma
Guy J. Shindo
Hawai’i Region Office
Branch Real Estate
Main Banking Region
Kahului Branch
Leland K. Kahawai
Gregory J. Sitar
Joanne H. Arizumi
Brian M. Kakihara
Wayne K. Suehiro
Benjamin K. Akana
Main Banking Region
Craig S. Avellar
Wealth Advisory Division
Ernest L. Bonser
Risk Management
Joyce W. Borthwick
Real Estate Lending Support
Sharon S. Brown
Sales, Service � Training
Joy P. Cabildo
Maui Region Office
Marion M. Kamei
Private Banking
Kent R. Lau
Main Banking Region
Robin S. Midkiff
Personal Trust
Kenneth L. Miller
Investment Services
Michael J. Murakoshi
University Branch
Pearlridge Branch
Lynn M. Takahashi
Private Banking
Mark S. Taylor
Trust Service Center
Michael G. Taylor
Wealth Advisory Division
Lois M. Tojio
‘Aina Haina Branch
Elizabeth L. Tom
Residential Real Estate
Kaua‘i Region Office
Private Banking
Neill A. Char
Keith H. Nagata
Michael A. Tottori
Private Banking
Business Services
Wealth Advisory Division
Rene M. Chinen
Candice Y. Naito
Gordon M. Uechi
Michael A. Coates
Vernon Y. Nakamura
Legal � Corporate Services
Operations Services
John C. Coltrin
Western Region Dealer Center
Kapi‘olani Banking Region
Legal � Corporate Services
Edward G. Untalan
Kalihi Branch
Maite Banking Center
Michael T. Nishida
Glenn N. Wachi
IT Infrastructure
Kapi‘olani Banking Region
First Hawaiian
Leasing, Inc.
Robert S. Harrison
Chairman
Robert T. Fujioka
Chief Executive Officer
Keethe T. Koyanagi
President
Brian Y.C. Lau
Senior Vice President
Bishop Street Capital
Management
Robert T. Fujioka
Chairman � Chief Executive
Officer
Michael K. Hirai
President, Chief Investment
Officer � Director of Fixed
Income
Kenneth L. Miller
Senior Vice President �
Director of Equities
Jennifer C.M. Carias
Senior Vice President �
Senior Portfolio Manager
Ryan S. Ushijima
Senior Vice President �
Chief Compliance Officer
First Hawaiian Bank
Foundation
Robert S. Harrison
Guam � CNMI Region Office
Kapi‘olani Banking Region
Mitchell E. Nishimoto
Wesley M. Wakamura
Kapi‘olani Banking Region
Chairman
Thomas W. Dixon, Jr.
Todd T. Nitta
Vernon Y.C. Wong
Walter A. Dods, Jr.
Christopher L. Dods
Legal � Corporate Services
Donald P. Yannell
Sharon S. Brown
Laura-Lynn V. Dacanay
Chief Credit Officer
Credit Administration
Card Services
John S. Fujimoto
Deputy General Auditor
Jerome K. Fukuhara
Retail Planning
Dealer Division
Neal K. Okabayashi
Glen R. Okazaki
Loan Operations
Wealth Advisory Division
Waik k Branch
Chairman Emeritus
President
Sherri Y. Yim
General Auditor
Carrie K.S. Okinaga
Legal
Carol M. Ono
Operations Research �
Development
15
Board of Directors
Robin K. Campaniano
Robert P. Hiam
J. Michael Shepherd
General Partner,
Ulupono Initiative
President � Chief Executive Officer,
Hawaii Medical Service Association
Chairman � Chief Executive Officer,
BancWest Corporation and
Bank of the West
François Dambrine
John A. Hoag
Head of Retail Banking in the U.S.A.,
BNP Paribas
President (Retired), First Hawaiian Bank
W. Allen Doane
Chairman � Chief Executive Officer
(Retired), Alexander � Baldwin, Inc.
Walter A. Dods, Jr.
Chairman � Chief Executive Officer
(Retired), First Hawaiian Bank
Donald G. Horner
Chairman of the Board,
First Hawaiian Bank
David C. Hulihee
President,
Royal Contracting Co., Ltd.
Chairman, Alexander � Baldwin, Inc.
Chairman � Chief Executive Officer,
Grace Pacific Corporation
Dr. Julia Ann Frohlich
Dr. Richard R. Kelley
President Emeritus, Blood Bank of Hawaii
Chairman Emeritus,
Outrigger Enterprises, Inc.
Michael K. Fujimoto
Bert T. Kobayashi, Jr.
President � Chief Executive Officer,
HPM Building Supply
Senior Partner, Kobayashi, Sugita � Goda
Paul Mullin Ganley
Faye Watanabe Kurren
Partner, Carlsmith Ball LLP
President � Chief Executive Officer,
Hawaii Dental Service
Trustee, Estate of S.M. Damon
Robert S. Harrison
Chief Executive Officer,
Kamehameha Schools
Warren H. Haruki
Dr. Richard T. Mamiya
Chairman � Chief Executive Officer,
Maui Land � Pineapple Company, Inc.
President (Retired), Verizon Hawaii Inc.
Director and Non-Executive Chairman,
Zilber, Ltd.
Chairman, Clarence T.C. Ching Foundation
President � Chief Operating Officer (Retired),
First Hawaiian Bank
Allen B. Uyeda
President � Chief Executive Officer,
First Insurance Company of Hawaii, Ltd.
Jenai Sullivan Wall
Chairman � Chief Executive Officer,
Foodland Super Market, Ltd.
Robert C. Wo
President � Secretary,
BJ Management Corporation
Chairman, C.S. Wo � Sons, Ltd.
Dee Jay A. Mailer
President � Chief Executive Officer,
First Hawaiian Bank
President � Chief Executive Officer,
Grove Farm Company, Inc.
John K. Tsui
Heart Surgeon (Retired)
Leighton S.L. Mau
President � Chief Operating Officer,
Waikiki Business Plaza, Inc.
Wesley T. Park
President, Maunawili Consulting LLC
Also a member of the BancWest Corporation
Board of Directors
Throughout 2011, Donald G. Horner was Chairman
and Chief Executive Officer of First Hawaiian Bank and
Robert S. Harrison was President and Chief Operating
Officer of the bank. Effective January 1, 2012
c 0G-0,#00#2'0#"1&'#$6#!32'4#ɛ!#0-$2&#
bank, but remains Chairman of the Board
c 0G00'1-, #!+#0#1'"#,2,"&'#$6#!32'4#
Officer of the bank.
16
KAUA‘I
NI‘IHAU
Lihu‘e
GUAM
O‘AHU
Kailua
MOLOKA‘I
Honolulu
Hagatna
MAUI
Lana‘i City
Wailuku
LANA‘I
SAIPAN
HAWAI‘I
Hilo
The 63 Branches of
First Hawaiian Bank
Kailua-Kona
O‘AHU (35)
HAWAI‘I ISLAND (8)
Honolulu:
Hilo (2)
Honoka‘a
Kamuela
Kealakekua
Kona
Pāhoa
Waikoloa
‘Aina Haina
Chinatown
Downtown–Main
Eaton Square
Hawai‘i Kai
Hickam AFB
Kahala
Kaimukī
Kalihi
Kapahulu
Kapahulu Market
Kapi‘olani
King-Liliha
Liliha
Makiki
Mānoa
Moanalua
Sand Island
University
Waikīkī
Ward
‘Aina Haina Shopping Center
2 North King Street
999 Bishop Street
438 Hobron Lane
7110 Kalaniana‘ole Highway
30 Hickam Court
1348 Hunakai Street
3599 Wai‘alae Avenue
2250 North King Street
433 Kapahulu Avenue
888 Kapahulu Avenue
1580 Kapi‘olani Boulevard
445 North King Street
1420 Liliha Street
1111 South Beretania Street
Mānoa Marketplace
1000 Mapunapuna Street
120 Sand Island Access Road
2411 South King Street
2181 Kalākaua Avenue
250 Ward Avenue
Windward O‘ahu:
Kahuku
Kailua Kāne‘ohe
Kāne‘ohe Bay
Kahuku Sugar Mill Shopping Center
705 Kailua Road
Windward City Shopping Center
46-047 Kamehameha Highway
MAUI (7)
Kahana
Kahului
Kīhei
Lahaina
Pukalani
Wailea
Wailuku
Kahana Gateway Center
20 West Ka‘ahumanu Avenue
Lipoa Shopping Center
215 Papalaua Street
67 Makawao Avenue
161 Wailea ‘Ike Place
27 Market Street
KAUA‘I (7)
Hanapepe-‘Ele‘ele Kapa‘a
Kōloa
Kukui Grove
Līhu‘e
Princeville
Waimea
‘Ele‘ele Shopping Center
4-1366 Kūhiō Highway
3506 Waikomo Road
Kukui Grove Shopping Center
4423 Rice Street
5-4280 Kūhiō Highway
4525 Panakō Road
LĀNA‘I (1)
Central/Leeward O‘ahu:
Lāna‘i City
‘Ewa Beach
Hale‘iwa
Kapolei
Mililani
Pearl City
Pearlridge
Schofield Barracks
Wahiawā
Wai‘anae
Waipahu
GUAM (3)
‘Ewa Beach Shopping Center
66-135 Kamehameha Highway
Kapolei Shopping Center
Mililani Shopping Center
890 Kamehameha Highway
98-1071 Moanalua Road
Building 3321
730 California Avenue
86-020 Farrington Highway
94-205 Leoku Street
Hilo Shopping Center
120 Waiānuenue Avenue
45-3538 Mamane Street
Kamuela Shopping Center
81-6626 Mamalahoa Highway
74-5593 Palani Road
Government Main Road
Waikoloa Highlands Shopping Center
Dededo
Maite
Tamuning
644 Lāna‘i Avenue
Compadres Mall
400 Route 8
645 Route 1, South Marine Corps Drive
SAIPAN (2)
Gualo Rai
Oleai
Gualo Rai Commercial Center
Oleai Center, Beach Road, Chalan Laulau
First Hawaiian Bank
999 Bishop Street | Honolulu, Hawai‘i 96813
www.fhb.com